Tuesday, October 04, 2016
Lower again today as the Dow fell 85 points on what passes for average volume these days. The advance/declines were shy of 3 to 1 negative. This should get the summation index heading lower. Just waiting for Friday in my opinion here. Plenty of time in the October option cycle to make a trade if you're so inclined. I'm on the sidelines until a decent signal occurs. GE was off 1/8 and volume picked up to the downside. The big news was with gold today as it got clobbered. The precious metal futures dropped 40 bucks as we sliced through the $1300 level. The US dollar was higher but not by enough to justify a $40 drop in gold. Not sure what is going on here. The XAU lost 8 2/3, while GDX fell 2 1/2. Volume was off the charts heavy on the selling. It appears that everyone headed for the exits at the same time. The usual positive seasonal bias for gold did not show up this year. Mentally I'm doing OK. Feeling tired but that is to be expected as I recuperate. The market is trying to figure out which way to go here. The small stocks are acting relatively better so a bullish outcome is probably to be expected eventually. They continue to trade above their 50 day moving averages, while the big cap indices are below the 50 day. Just an observation there, may not mean anything. Asia was slightly higher overnight, with Europe having a better upside performance. We'll see what tomorrow brings.